Interim Management Statement

RNS Number : 3047N

Atlantis Japan Growth Fund Ld

05 September 2013

 



ATLANTIS JAPAN GROWTH FUND LIMITED

INTERIM MANAGEMENT STATEMENT(UNAUDITED)

For the period to 30 August 2013

INVESTMENT OBJECTIVE AND POLICIES

The Company aims to achieve long term capital growth through investment wholly or mainly in listed Japanese equities. The Investment Manager follows a stock-driven investment approach. The Company's portfolio is invested in companies quoted on the Tokyo Stock Exchange, the regional stock markets of Fukuoka, Nagoya, Sapporo and the Japanese over-the-counter market. The above include the Ambitious market (Sapporo), Mothers (Tokyo), Centrex (Nagoya), JASDAQ (Tokyo) and Q Board (Fukuoka). Investment may also be made in companies listed elsewhere but controlled from Japan or with a material exposure to the Japanese economy. The Company may also invest in securities which are neither listed nor traded on the Japanese over-the-counter market provided that immediately after any such investment is made the Company does not have more than 10 per cent of its Net Asset Value so invested. The Company may borrow money with a view to enhancing the capital returns. The Company may hedge its exposure to Japanese yen.

INVESTMENT MANAGER AND INVESTMENT ADVISER

AFMG Limited is the Investment Manager of the Company. Tiburon Partners LLP acts as its Investment Adviser. Atlantis Investment Research Corporation, established in Tokyo, through Edwin Merner supported by Taeko Setaishi, advises the Investment Adviser on the day-to-day conduct of the Company's investment business.

PERFORMANCE

	Feb 13	Aug 13
Net Asset Value (GBP)	1.0835	1.1551
Mid Share Price (GBP)	0.9650	1.1280
Premium/Discount (%)	-10.94	-2.39
Fund Size (US$m)	84	87

	6 months	1 year	3 years	5 years	10 years
Net Asset Value return (US$, %)	8.9	31.8	59.1	34.2	65.5
Mid Share Price return (GBP, %)	16.8	38.8	83.5	65.8	80.8

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Source for NAV and Fund size: Tiburon Partners LLP, Northern Trust

Source for share price and exchange rates: Bloomberg

For the period under review, the Fund's NAV was up 8.9%. This compares with an increase of 8.0% for the Topix TR index. Since inception, the Fund is up 80.7% well ahead of the Topix TR, which is down 10.7% (all figures in US dollar terms).

At the end of the period under review, the Fund had JPY864 million in borrowings and about JPY51 million in cash, which means the leverage is around 9.5% on a net basis.

The Fund has no foreign exchange hedges at this time and none are currently planned. The yen ended the period at JPY98.06 against the US dollar compared with JPY92.4 at the end of February 2013, weakening by 5.8%. A stronger yen has a positive impact on the dollar NAV of the Fund and vice versa.

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Source for AJGF NAV: Tiburon Partners, Northern Trust

Source for Topix TR Index and exchange rates: Bloomberg

TOP TEN HOLDINGS

Company	% of net assets
Daikin Industries	4.7
Toyota Motor	4.2
Sumitomo Mitsui Financial	4.0
Inaba Denki Sangyo	3.7
Nihon M&A Center	3.7
Japan Aviation Electronics	3.5
Toyota Tsusho	3.3
Mitsui Fudosan	3.3
Foster Electric	3.2
Saint Marc Holdings	3.2
Total	36.8

ASSETS AND GEARING

	Feb 13	Aug 13
Total Assets (US$m)	84.4	87.2
Cash (US$m)	2.1	0.5
Borrowings (US$m)	9.3	8.8

BREAKDOWN BY MARKET

Market	% of Holdings
TSE1	88.9
TSE2	9.3
Mothers	7.4
Jasdaq	3.1
NGY1	0.7
NGY2	0.1
Total	109.5

FUND DETAIL
No. shares outstanding: 48,666,711

Changes to share capital - the number of shares reduced following a redemption point.

PRICES AVAILABLE FROM:
Bloomberg:        AJG LN

Lipper:              60000517

ISIN:                 GG00B61ND550

SEDOL:            B61ND55

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Source: Tiburon Partners LLP, Northern Trust

All figures in US$ as at 30 August 2013

Tiburon Partners LLP is authorised and regulated by the Financial Conduct Authority

 

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